Brazil. Lanxess announced the acquisition of biocide manufacturer, Itibanyl Produtos Especiais Ltda (IPEL). The family business based in Jarinu, São Paulo, generated sales in the lower range of one million euros in 2018.
Both companies signed an agreement on the matter on November 28. The parties agreed not to disclose the purchase price. The transaction is still subject to approval by responsible antitrust authorities and is expected to be completed in the first quarter of 2020.
"The acquisition fits perfectly with our strategic focus on cost-effective specialty chemicals," said Rainier van Roessel, member of Lanxess' Board of Directors.
With the acquisition of IPEL in Brazil, the Lanxess Material Protection Products business unit is strengthening its global presence and is now in a position to serve its South American customers from a local production facility. The business unit was previously represented with production facilities in Europe, the United States and Asia.
"With the IPEL business, we are expanding our global production network and strengthening our position in South America," said Oliver Kretschik, Head of the Biocides business line in the Material Protection Products business unit. "IPEL also has a strong customer network that will soon be able to benefit from our combined portfolio of products and regulatory expertise."
In addition to around 100 employees and production facilities, Lanxess is also taking over the Brazilian company's laboratory facilities. With the acquisition, the specialty chemicals company will also gain access to strategic intermediates.
IPEL generates the majority of its sales with biocides and specialty chemicals for the paints and coatings industry. Biocides protect materials from infestation, destruction and decomposition caused by microorganisms. They extend the service life and guarantee the functionality of the final products. The product portfolio also includes preservatives and fungicides for process control in water treatment, as well as active ingredients for disinfection and cleaning agents.